Vegas Ticket Seller Files for Chapter 11

Tix Corp. and its subsidiary, Tix4Tonight, have filed for voluntary Chapter 11 protection in Nevada.The Las Vegas discount ticket seller, formerly located in Studio City, has been hurt because shows in Vegas seized up as a result of the coronavirus pandemic.The company said its reorganization should have no impact on customers, and it intends to obtain debtor-in-possession financing to enable it to continue operating. However, it will pursue a sale of its assets to the highest or best bidder through a court-supervised auction.After consideration of alternatives, the Tix directors concluded that the Chapter 11 process was the best long-term solution to the company’s liquidity challenges.According to the bankruptcy filing, the unsecured creditors include real estate developer Brookfield Properties, owed $391,000 for a lease on its Fashion Show Mall kiosk; and Planet Hollywood Resort and Casino, owed $595,000 for a lease on its kiosk.In total, the company said in the filing there was $3.1 million in unsecured claims against it.Tix is currently operating three of its discount Tix4Vegas kiosks in Las Vegas to sell tickets for shows, concerts, attractions and tours, as well as discount dining and shopping offers. It previously operated seven kiosks and an online ticket site before shutting them all down in March of last year due to the coronavirus pandemic.The bankruptcy filing announcement was made on Wednesday. On Thursday, shares of Tix (TIX) closed up a fraction of a cent, or nearly 17 percent, to almost 4 cents on the over-the-counter market.